Challenges in providing social security to gig workers are i Definition issue ii Complex e...........

Economic and Social Issues Nature of Indian economy

The draft Code on Social Security has proposed that the Centre may formulate social security schemes for gig workers.As per the draft social security code, the Central Government may formulate and notify, from time to time, suitable social security schemes for gig workers and platform workers.A gig economy is also cost efficient for companies, given that they can accommodate temporary workforce, according to the customer requirements or business needs, leading up to saving administrative and compliance costs that they would otherwise incur if they choose to hire full time or regular employees, especially in cases where business models do not involve the engagement of permanent workforce. It may not be possible for companies and start-ups to afford skilled professionals as fulltime employees. In such situations, companies may choose to enter into contracts with the professionals for a specific time period. This relationship is rather symbiotic, and both parties have equal freedom to look for options that cater to their needs. Meanwhile, both parties simultaneously spend their energy in cultivating connections and building relationships with their respective demography.

Challenges in providing social security to gig workers are

i Definition issue

ii Complex ecosystem

iii Cost burden on companies

iv Fluctuating earning

Select the correct answer using the code given below

i, ii and iii only

ii, iii and iv only

i, iii and iv only

All of the above

None of these

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Explanation:

Challenges in providing social security to gig workers are

•Definition issue: Gig workers do not fit into the definition of “employee” or “worker” and, therefore, remain out of India’s labour law coverage. Recent draft Code on Social Security has also not defined gig workers clearly.

•Complex ecosystem: Gig economy ecosystem is complex where it is difficult to determine who should be liable for the employer contributions or to determine who will bear the cost of social security for gig workers.

For example, OLX helps companies like Zomato and Swiggy hire workers. This makes it difficult to determine the actual employer.

•Cost burden on companies: Over regulations can burden companies with extra cost, which will indirectly impact gig workers.

•Fluctuating earning: Gig workers often have fluctuating earnings as they are paid at irregular intervals.Thus, contributions necessary for social security are difficult to calculate.